Earnings Results: Discounts at Urban Outfitters are fading, and customers are choosing ‘fashion over price’

by News Feed Editor | Aug 22, 2023 | Stock Market

Executives at Urban Outfitters Inc. on Tuesday said they expected fewer markdowns in the third quarter, as more customers choose “fashion over price,” particularly at its higher-end women’s clothing chains Free People and Anthropologie. The remarks could signal better news for clothing retailers targeting wealthier and middle-class customers — but fewer bargains for shoppers — after a spike in prices for basic necessities last year left people with less flexibility to spend on their wardrobes. While wealthier customers have fared better despite the higher prices, many stores have had to cut prices on clothing to clear shelves.

Urban Outfitters’ second-quarter results on Tuesday beat estimates. Same-store sales at stores under its Free People and Anthropologie banners — which also include the Terrain and FP Movement brands and target a wealthier customer — jumped 26.9% and 10.6%, respectively. “The customer is definitely favoring fashion over price,” Chief Executive Richard Hayne said of customers at Anthropologie and Free People on Urban Outfitters’ earnings …

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[mwai_chat context=”Let’s have a discussion about this article:nnExecutives at Urban Outfitters Inc. on Tuesday said they expected fewer markdowns in the third quarter, as more customers choose “fashion over price,” particularly at its higher-end women’s clothing chains Free People and Anthropologie. The remarks could signal better news for clothing retailers targeting wealthier and middle-class customers — but fewer bargains for shoppers — after a spike in prices for basic necessities last year left people with less flexibility to spend on their wardrobes. While wealthier customers have fared better despite the higher prices, many stores have had to cut prices on clothing to clear shelves.